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Motoring costs fall by 3.4 percent

Latest AA survey shows fuel prices rise while new car prices fall.

An annual survey of motoring costs in Ireland by the AA shows that the cost of running a small family car has fallen by 3.4 percent in the last year - it now costs €11,171 per year, down by €397 on the 2009 figure.

"The bad news is rising fuel costs which are up sharply over the past year costing motorists dearly. In June 2009 petrol cost 116 cent per litre, it has risen dramatically in the last year, and is up by 14.9% to 133.3 cent per litre. That difference alone costs the average motorist an extra €26 per month compared to this time last year." says Director of Policy at the AA, Conor Faughnan.

The survey also confirms a drop in new car prices and motor insurance, with an average 3.42 percent recorded for car prices and just 1.3 percent for insurance. However, insurance remains an ongoing high cost for Irish motorists.

"Insurance costs are still a major concern, with motorists encouraged to shop around and to look at the nature of their cover. It is one of the biggest bills that motorists pay, but there are ways of getting it down" said Conor Faughnan.

The survey also found small reductions in servicing and parking charges, which were on-par with inflation for 2009. The AA calculations show that an average family car consuming 9.5 l/100km, doing 16,000 kilometres per year will use just over 1,500 litres of fuel. Last year this worked out at €1,740 and this year the cost has risen by 15 percent to €2,000.

The AA figures are currently based on petrol usage, rather than diesel, as diesel cars still account for only 20 percent of cars on Irish roads. With the current emissions based tax system, introduced in July 2008, this figure should reverse in time to come. Over 65 percent of new cars sold so far in 2010 have been diesel and this trend will continue as manufacturers continue to push more and more diesel models onto the market.

Published on July 29, 2010
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